The Dreon system was a planetary system near the Badlands, the Rolor Nebula and Kavaria, located about twelve hours travel-time from Bajor and quite a distance from Tholian space. It was the location of a Bajoran colony on Dreon VII.

Working for the Bajoran Ministry of Commerce in 2372, Kasidy Yates regularly carried cargo to this system. At one point, Yates claimed to have rendezvoused with a Tholian freighter here, though she actually had met a Maquis raider in the Badlands. (DS9: "For the Cause")

Benjamin Sisko seemed to think of Kavaria and the Dreon system as neighboring systems, but Kasidy (perhaps maliciously) didn't seem to agree.
According to Star Trek: Star Charts (p. 46) and Stellar Cartography: The Starfleet Reference Library ("Federation Historical Highlights, 2161-2385"), the Dreon system was located in the Alpha Quadrant. It was a binary system with a G-class star and a M-class star.
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